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Fuel supplier Greenergy has announced it will launch consultations on a proposal to permanently close one of its biodiesel plants in North East Lincolnshire, citing what it described as "continued market pressures".
The company confirmed it will begin a consultation process to halt production at its site in Immingham, on the Humber estuary, where around 60 jobs are at risk.
The plant is one of the last remaining biodiesel facilities in the UK. It began operations in 2007 and accounts for more than 25% of the country's total biodiesel output, according to Greenergy.
The company's Chief Executive, Adam Traeger, said:
"This has been an extremely difficult decision, and we will begin consulting with affected employees as soon as possible."
The announcement comes just over a week after the owners of the nearby Lindsey refinery declared insolvency, putting 420 jobs at risk.
The company, which has been operating for more than 30 years and is part of the Trafigura group, added that it had carried out a strategic review of the site's future back in May.
The Immingham plant converts used oils into biodiesel, which is blended with the diesel used in cars, buses and lorries to reduce carbon emissions.
Traeger said:
"Given the sustained pressures in the market, we unfortunately do not have enough clarity on UK biofuel policy to justify the substantial investment needed to make our Immingham operations competitive."
He also noted that the company is seeking urgent talks with ministers on raising the biofuel blending mandate in UK petrol and diesel as a way of protecting the sector.
Source: BBC